From voting online and using digital prescriptions; to a single piece of personal ID, Estonia’s economy is bound to tech, writes Kayode Babarinde, executive director of the Africa Blockchain Institute.
Its government is digital, and most services in the country either are or can be provided electronically – in fact, it’s nearly impossible to overstate the extent of Estonian digitisation.
Located in Northern Europe, with a total population of about 1.3 million people, Estonia has become a global pioneer in digital transformation, inspiring other countries to embrace technology to enhance governance and improve the quality of life for their citizens. But might an Estonian-style digital state become a viable reality in Africa?
What’s important about Estonia’s digital model
Estonia has emerged as a digital success story, thanks to its forward-thinking policies, robust infrastructure, and commitment to making technology accessible to all. A standout feature of Estonia’s digital transformation is its e-residency programme, which enables people from around the globe to start businesses and access banking services online, regardless of their physical location.
This initiative has attracted thousands of businesses worldwide. Another cornerstone of Estonia’s digital success is its digital identity system. Every Estonian citizen is issued a secure digital ID by the government, granting access to a wide range of online public services, including voting, medical care, and tax payments. This efficient digital infrastructure has significantly reduced bureaucratic hurdles and enhanced citizen participation in local communities.
Estonia’s e-government services also stand out, allowing citizens to conduct nearly all government-related transactions online. From filing taxes to voting in national elections, these digital services have streamlined processes, improved efficiency, and reduced corruption. The e-justice system, for instance, is among the cheapest and fastest in Europe, demonstrating the effectiveness of Estonia’s approach to digital governance.
Finally, Estonia has prioritised cybersecurity, solidifying its position as a hub for innovation in digital security. The “X-Road” data exchange platform ensures secure information sharing between government agencies, businesses, and individuals, while advanced systems protect against cyberattacks. This strong focus on digital security has made Estonia a global leader in safeguarding digital infrastructure.
The case for a “digital Africa”
The argument for a “digital Africa” is predicated on the transformative potential of technology to generate economic growth and better governance. A recent report from the International Finance Corporation (IFC) emphasises that over 600,000 formal businesses and 40 million microenterprises in Africa could benefit from digital advancements. The report, however, indicates that while 86 per cent of African businesses have access to digital tools, only a fraction fully utilise them. With Africa’s young and growing population, a digital overhaul might stimulate a new era of creativity, providing the essential infrastructure for development. The growth of mobile phones and internet connectivity has already proved the point on how technology bridges the gaps in access to services, with countries like Mauritius doing particularly well in terms of connectivity and access.Its vibrant and robust ICT sector delivers widespread access and connectivity rates, attributed to the liberalisation of the telecommunications industry and intense competition. Mobile banking is also changing financial inclusion for millions. Thus, digital technologies have the capacity to surpass traditional development impediments by embracing cost-effective solutions.
Additionally, Africa’s digital transformation is an economic imperative. Utilising the potential of fourth-generation technologies such as artificial intelligence, blockchain, and e-commerce will help African firms and governance systems expand rapidly, attract investment, and generate employment. The expanding digital environment in places like Lagos, Nairobi, and Cape Town is a testament to the entrepreneurial potential on the continent. However, fulfilling this promise needs investments in digital infrastructure and policies that support innovative environments.
Digital Africa is not just about technology but also about developing a culture of entrepreneurship and leadership that can drive sustainable economic growth for years to come.
A digital Africa is within reach
Strategic initiatives such as the Digital Economy Initiative for Africa (DE4A), spearheaded by the World Bank, aim to ensure that every business and government in Africa is digitally enabled by 2030. A digital state like Estonia is not simply a lofty ideal – it is a concrete option for African states that are prepared to invest in digital infrastructure and the right governance reforms. The key to success will be ensuring that digital transformation is inclusive, egalitarian, and sensitive to local settings.
In many respects, Africa is well positioned to leapfrog traditional development paradigms and construct a digital society that serves the demands of its residents while generating a more connected and wealthy future. It is for this reason that the Government of Estonia has proposed cooperation with African countries to strengthen bilateral and multilateral relations based on shared values, interests and equal partnership. The main objectives of this cooperation are to increase the security, prosperity and stability of Africa, strengthen business relations and support global sustainable development. Estonia’s renewed engagement with Africa is in line with the EU’s vision of the future EU-Africa partnership, the African Union Agenda 2063 and the UN Sustainable Development Goals With these efforts, a digital Africa might become a reality sooner than we imagine.
